New Zealand CPI at the bottom of the band

QQ +0.3%, below expectations for a rise of 0.5%. YY at +1.0%, below forecasts for +1.2% and the lowest level seen since Q3 2013.

Despite the sharp turn lower, with a weak Q4 2013 print rolling off the data series next quarter, along with recent declines in the NZD, something that should support tradable inflation despite recent commodity price declines, it’s likely that reading will tick higher, if not modestly, in Q4.